Word problems I am not good at word problems!!!?

Question

A book company produces children’s books. One time fixed costs for

Little Home By The Sea, are $12,838 which includes fees to the author,

the printer and for the building. Variable costs amount to $14.50 per book.

The books are then sold to bookstores around the country at $39.00each.

How many books must be printed and sold to break-even?

Answer 1

524

39-14.5=24.5

12838/24

Answer 2

The books are 39.00 each, minus the 14.50 cost per book, leaving you with a profit per book of 24.50. 12,838 divided by 24.50 equals 524 books to break even.

Answer 3

This is not a Wordplay question, it's Business.

If a publishing house was set up to produce just one book title, a very unlikely scenario, then the total cost includes $12,838 plus $14.50 per book.

$39.00 - $14.50 = $24.50 net profit on sales.

$12,838 / $24.50 = 524 books sold to break even.

However, in normal circumstances, the cost to produce a single title should only comprise the variables including payment to the author. If the printing is done by another company, then this becomes another variable (cost of the print run, binding and finishing etc. divided by the number of books produced).

The publisher's printing equipment and building are company assets and are not included in the cost of production of one title.